The Hindu Business Line : Boom time for IT, ITES realty offtake

THE uptake in real estate space, particularly by the booming IT and ITES segments during the first quarter of 2004, may see further growth. Recent studies point to the possibility of occupancy crossing 20 million sq. ft during the year.

According to CB Richards Ellis, a real estate consultancy firm, the findings of the realty trends in the IT-ITES sector across India show that in Q1 of 2004, approximately 6.45 million sq. ft of space was taken up in the five biggest IT-ITES hubs of Bangalore, Delhi, Mumbai, Pune, Chennai and Hyderabad.

Based on the Q1 figures, the total space uptake is expected to cross the 20 million sq ft mark by the year 2004, which would be an increase of approximately 54 per cent from the earlier estimate of approximately 13 million sq ft.

During the first quarter of 2004, Bangalore topped the list with approximately 2 million sq. ft of space uptake, closely followed by Mumbai, with approximately 1.9 m sq ft. Pune finished third with approximately 1.45 m sq ft . Chennai and Hyderabad have taken up the fourth and fifth positions with approximately 0.6 million sq ft and 0.5 million sq ft of space respectively. Delhi was placed sixth with about 0.4 million sq. ft. Mr Anshuman Magazine, Managing Director, CB Richard Ellis, South Asia, in a statement said "The Year 2004 is expected to witness substantial real estate activity in the IT / ITES segment. If Q1 04 is any indication of the year to come then the year would prove even better for this sector, which further substantiates the fact that India is fast emerging as the knowledge capital of the world."

On the other hand, a recent report from Cushman & Wakefield stated "after witnessing cyclical upheavals, the real estate market in the last quarter (Q1) seems to have stabilised and the present market dynamics are backed by fundamentals that reflect a more mature market. The increased demand momentum created by the end user sector is expected to continue".

For instance in major centres such as Hyderabad and Chennai, realty is principally driven by IT and ITES segments which is followed by certain segments such as biotechnology. Giving the outlook for Bangalore, which has made significant strides with many more MNCs announcing plans to locate their base there, C&W stated that the commercial real estate demand in Bangalore continues to be driven by the tech sector. Due to upsurge in market activity, the vacancy levels had dropped and there are indications of market strengthening.

More Stories on : Software | Real Estate & Construction

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Small enterprises' IT spend to rise 21% CAGR: IDC

Boom time for IT, ITES realty offtake

Score Info sets up RFID centre in Gurgaon

i-flex deal with Caribbean bank

NetKraft may raise fresh funds

Marriage portal extends services

Now e-mails can be recalled

Apple asks Indian portal to `play fair' — Seeks to shut down free Web download